The subject is imported methanol, whose application scope is almost the same as that of China-origin methanol. However, market corner often takes place due to limited imported methanol supply. JLC’s China methanol paper goods trading service will increase market trading subject effectively and ease the short-term abnormal fluctuations caused by tight supply.

Boosting the activity of China methanol market

China-origin methanol paper goods trading service introduces deposit mode and presale mode, establishing 1-3-month presale period, which effectively compensated for the transaction demand of the entities in the blank period of futures non-most-traded contracts.

Promoting the establishment and improvement of China methanol pricing system

JLC established a valuation system based on the characteristics of China bulk product market. JLC has introduced imported methanol valuation service based on transactions, which aroused widespread concern in the industry and was actually applied to trade pricing. The launch of China methanol paper goods trading service will promote the establishment and improvement of JLC’s methanol valuation system and trading products, and establish the “price anchor” for the following methanol trading products.

Considering the demand of downstream users in East China and upstream China-origin methanol’s particularity of stocking and transportation, high-end quality standards subject, National Standard Excellent Products (ethanol content 100), was specially set up after the detailed communication with most of the market insiders. At the same time, considering upstream capacity and downstream MTO enterprises’ quality standards, a special subject, National Standard Excellent Products (without ethanol content), is added.

Delivery locations

For delivery locations, considering China-origin methanol storage features and logistics routes, Yanghong and Sinopec’s warehouses in Taicang became the first choice, where imported paper goods were centralized. Meanwhile, Changzhou, Jiangyin, Nantong, Zhenjiang and other regions were also chosen as important inland goods transit stations and distribution sites. The Bohai rim region in North China (Jingtang port and Tianjin port) was also chosen as the first delivery area. In order to perfect the transaction support mechanism, services in the Yangtze River Basin, South China and other regions will also be set up in the near future according to the market demand.

Trading modes

Considering the existing habits of paper goods market and the breadth of market participation, JLC set up the “offline matching+online trading platform” mode, which can meet the needs of humanized flexible services and online efficient transactions. Domestic paper goods and imported paper goods are served together to meet diversified trading needs.

Performance services

JLC will launch trading performance services to ensure the funds safety and performance guarantees of both parties, and prevent default risk.